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UPS Grows Third Quarter Profit

Trucking and parcel delivery company UPS Inc. Friday reported an upswing in its third quarter earnings.

Profit totaled $1.21 billion, or $1.32 per diluted share, compared to $1.1 billion, or $1.16 per diluted share a year ago. Revenue increased to $14.29 billion from $13.52 billion.

Daily package volume in the U.S. was 6.9% higher during the quarter. The company delivered 1.1 billion packages around the world, up 6.9% over the third quarter 2013.

UPS Supply Chain and UPS Freight revenue was up 7.4% to $2.4 billion, resulting primarily from growth in the distribution and UPS Freight business units, according to the company. Operating profit was 7% higher at $215 million, and operating margin was 8.9%.

UPS Freight revenue increased 7.9% to $810 million. Less-than-truckload shipments were 4.7% higher and revenue per hundredweight improved 1.1%. Operating profit and margin expanded from the third quarter last year.

The company announced its expectations for the upcoming holiday season, with parcel shipments in December forecast to climb 11% over the prior year. UPS earlier announced it had committed an additional $175 million in operating expense and $500 million in capital expenditures to enhance its capabilities and prepare the network for peak and future volume growth, following service meltdowns last year resulting in many packages not being delivered in time for Christmas as promised.

UPS also reaffirmed earlier expectations that 2014 adjusted diluted earnings per share to be between $4.90 and $5, a 7% to 9% increase over 2013’s results.